When an Account Receivable That Has Previously Been Written Off

question 51

Short Answer

When an account receivable that has previously been written off is later paid, under the allowance method the correct accounting is to: $\begin{array} { l } \text {a. Dr. A/R }\\ \quad\quad\text {Cr. Allowance for doubtful accounts }\\ \text {Dr. Cash }\\ \quad\quad\text {Cr. A/R }\\ \text { b. Dr. Cash}\\\quad\quad \text {Cr. A/R }\\ \text {Dr. A/R }\\\quad\quad \text { Cr. Allowance for doubtful accounts}\\ \text { c. Dr. Cash}\\\quad\quad \text {Cr. AVR }\\ \text {d. Dr. A/R }\\\quad\quad \text {Cr. Allowance for doubtful accounts }\\\end{array}$

Understand how changes in income affect the demand for normal and inferior goods.

Grasp the relationship between good prices and quantity demanded or supplied, distinguishing between movements along curves and shifts of curves.

Identify the characteristics and effects of substitute and complement goods on market demand.

Comprehend how changes in expectations about future prices impact current demand and supply.

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Definitions:

Economic Responsibility

The obligation of an organization or individual to make decisions that positively influence the economic well-being of society and stakeholders.

Moral Expectations

The ethical standards and behaviors that society believes individuals or organizations should adhere to.

Discretionary Responsibility

The accountability of a company or individual to make ethical decisions and act in the public interest, beyond mere compliance with laws and regulations.

Social Wellbeing

The condition in which individuals feel a sense of belonging and inclusion in a community, experiencing good social relationships and contributions to society.